Handling of errors
A member that makes a mistake in entering orders into the ETFplus market may ask for the error handling procedure. Please note that:
1) the request has to be submitted to Markets Supervision of Borsa Italiana as promptly as possible by telephone, by sending a written request to the following e-mail address : email@example.com;
2) the mistake has to be evident.
If there is no agreement between counterparties, Borsa Italiana may activate the “extraordinary procedure” when conditions 3 and 4 are also met:
3) the loss must exceeds the amount of:
a) 12,500 € in case of mistakes resulting from the entry of a single order or quotation;
b) 25,000 € in case of mistakes, involving the same instrument, resulting from the entry of more than one order or quotation. The interval between the conclusion of the first and last trade to which the request refers must not be more than 60 seconds.
4) the price of the trade executed during the continuous period must be higher or lower than a fixed price obtained by adding or subtracting the maximum price variation limit of trades with respect to the dynamic price to the “theoretical reference price”.
In determining the “theoretical reference price” for the ETFplus market, Borsa Italiana refers to one of the following prices:
- the arithmetic mean of the prices of a minimum of three and a maximum of ten consecutive trades on the same day, chosen among those preceding or following the error;
- the reference price;
- the mean of the specialist’s bid-ask quotations entered on the same day, chosen among those prior or subsequent to the error if not affected by the error itself.
The maximum price variation limit of trades with respect to the dynamic price is set, unless otherwise specified, according to the market segment where the instrument is traded (please refer to “Guide to the Parameters” for trading on the regulated markets organized and managed by Borsa Italiana):
|Fixed Income ETF|
|Without leverage||Underlying on overnight rate (euro)||± 0,15%|
|Underlying with maturity 0-1 year (euro)||± 0,35%|
|Underlying with maturity 0-1 year (other than euro)
Underlying with maturity 1 – 3 years
|Underlying with maturity 3-10 years||± 1,25%|
|Underlying with maturity more than 10 years
Underlying on corporate non investment grade
Underlying emerging markets
|With leverage||± 2,5%|
|Without leverage||± 2,5%|
|With leverage||± 5%|
|Without leverage||± 5%|
|Maximum leverage equal to 2||± 5%|
|Leverage more than 2||± 7,5%|
The “extraordinary procedure” may result, among other, in one of the following action:
- trades cancellation;
- transactions re-pricing.
The content of this page is not intended to be exhaustive but for information only. For further details please refer to the Rules of the markets organized and managed by Borsa Italiana S.p.A and related Instructions (http://www.borsaitaliana.it/borsaitaliana/regolamenti/regolamenti/regolamentoborsa-istruzionialregolamento.en.htm).